The Hanover Insurance Group (NYSE:THG) Issues Earnings Results, Beats Expectations By $1.47 EPS

The Hanover Insurance Group (NYSE:THG) released its earnings results on Tuesday. The insurance provider reported $5.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.84 by $1.47, Zacks reports. The Hanover Insurance Group had a net margin of 10.77% and a return on equity of 21.55%.

The Hanover Insurance Group Trading Up 2.1%

Shares of NYSE THG traded up $4.66 during midday trading on Tuesday, hitting $224.18. The stock had a trading volume of 318,712 shares, compared to its average volume of 328,127. The company has a quick ratio of 0.37, a current ratio of 0.37 and a debt-to-equity ratio of 0.22. The Hanover Insurance Group has a 1-year low of $164.85 and a 1-year high of $225.29. The company has a market capitalization of $7.84 billion, a price-to-earnings ratio of 11.28 and a beta of 0.28. The company has a fifty day moving average price of $204.06 and a 200 day moving average price of $186.25.

The Hanover Insurance Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were issued a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Friday, June 12th. The Hanover Insurance Group’s dividend payout ratio (DPR) is 19.12%.

The Hanover Insurance Group declared that its board has authorized a stock repurchase plan on Wednesday, May 13th that permits the company to repurchase $700.00 million in outstanding shares. This repurchase authorization permits the insurance provider to repurchase up to 10.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other The Hanover Insurance Group news, EVP Denise Lowsley sold 4,175 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $191.73, for a total transaction of $800,472.75. Following the completion of the sale, the executive vice president directly owned 3,883 shares in the company, valued at $744,487.59. The trade was a 51.81% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO John C. Roche sold 8,358 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $193.74, for a total transaction of $1,619,278.92. Following the completion of the sale, the chief executive officer directly owned 141,011 shares of the company’s stock, valued at $27,319,471.14. The trade was a 5.60% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 29,508 shares of company stock worth $5,704,651. Insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On The Hanover Insurance Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. JPL Wealth Management LLC purchased a new stake in The Hanover Insurance Group during the 3rd quarter worth $26,000. McMillan Office Inc. acquired a new position in shares of The Hanover Insurance Group during the fourth quarter worth about $31,000. Danske Bank A S purchased a new stake in shares of The Hanover Insurance Group in the third quarter worth about $73,000. Johnson Financial Group Inc. acquired a new stake in shares of The Hanover Insurance Group in the third quarter valued at about $78,000. Finally, Aster Capital Management DIFC Ltd grew its stake in shares of The Hanover Insurance Group by 229.3% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 629 shares of the insurance provider’s stock valued at $115,000 after buying an additional 438 shares in the last quarter. Institutional investors and hedge funds own 86.61% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on THG. Oppenheimer boosted their price target on The Hanover Insurance Group from $205.00 to $220.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Royal Bank Of Canada increased their target price on The Hanover Insurance Group from $195.00 to $215.00 and gave the stock a “sector perform” rating in a research report on Monday, July 13th. Citigroup reaffirmed an “outperform” rating on shares of The Hanover Insurance Group in a research note on Friday, July 10th. BMO Capital Markets lowered shares of The Hanover Insurance Group from an “outperform” rating to a “market perform” rating and increased their price objective for the stock from $194.00 to $203.00 in a report on Tuesday, May 19th. Finally, Morgan Stanley raised their target price on shares of The Hanover Insurance Group from $220.00 to $225.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, The Hanover Insurance Group has a consensus rating of “Moderate Buy” and an average target price of $218.29.

About The Hanover Insurance Group

The Hanover Insurance Group, Inc (NYSE: THG) is a property and casualty insurance company that provides a range of commercial and personal insurance products. Through its subsidiary companies, Hanover offers coverage for businesses of all sizes, including workers’ compensation, general liability, commercial auto, and professional liability. On the personal lines side, the company underwrites homeowners, personal auto, flood, and umbrella policies designed to meet the needs of individuals and families.

In addition to its core commercial and personal insurance offerings, Hanover maintains a specialty arm that focuses on niche markets through tailored product solutions.